The certificate of deposit interest rates at Marcus by Goldman Sachs start relatively low with its six- and nine-month terms. However, the interest rates on terms of a year or more are competitive with other high-yield banks’ ranks.

These rates are locked in from the moment you open the account until its maturity date. Plus, if you fund your CD with at least $500 within the first 10 days of account opening, you can receive the highest rate possible for that account. If you choose to renew an account, it will renew at the current rate.

Marcus compounds interest daily and credits interest to your account(s) monthly. Compounding interest daily means that your earned interest in turn earns interest more frequently than if it compounded monthly or quarterly as with some other banks.

Overview of Marcus by Goldman Sachs Bank CDs

Marcus by Goldman Sachs offers nine CD term lengths between six months and six years, allowing you to save toward both your short-term and long-term savings goals. Accounts with longer terms earn at more competitive interest rates. When you fund your account with at least $500 within 10 days of opening it, you’ll receive the highest rate Marcus offers for your selected CD.

Unlike many other banks, Marcus gives you 30 days after account opening to fund your CD. After that time, however, you cannot make any additional deposits. You must deposit a minimum of $500 in order to open a CD account. The bank also allows for penalty-free withdrawals of any interest credited to your account at any time during the CD’s term. You can also set up monthly transfers of your earned interest to another bank account. You will need to call the bank to set this up.

These withdrawals and transfers exclude the principal amount. If you want to withdraw a portion (or all) of the principal amount, you’ll face early withdrawal penalties. For terms less than 12 months the penalty is 90 days’ simple interest, terms of 12 months to five years cost 270 days of interest and terms longer than five years penalize 365 days of simple interest earned. Early withdrawal penalties differ from bank to bank.

To avoid the penalties, you’ll need to wait for your account’s maturity date to withdraw more than just the interest earned. After the maturity date, you have a 10-day grace period when you can make your withdrawals, transfers and any other changes. If you want to renew the account, you don’t have to take any action to do so.

How Much You Earn With a Marcus by Goldman Sachs Bank Certificate of Deposits Over Time

Marcus’ shorter term accounts, the six-month and nine-month terms, have lower interest rates than their longer-term counterparts. This means that you’ll only earn a few dollars in interest over the course of the term, even with interest compounding daily. You’ll earn more over time with a longer-term CD. However, keep in mind that you cannot access the full amount until the account reaches maturity. No matter the account’s term length, you can benefit more by making larger deposits.

The table below shows what your total balance could look like depending on your initial deposit and your term length.

Initial Deposit

6-Month CD

12-Month CD

60-Month CD

$500

$502

$509

$567

$1,000

$1,003

$1,018

$1,133

$2,500

$2,508

$2,545

$2,833

$5,000

$5,015

$5,091

$5,666

$10,000

$10,030

$10,182

$11,331

How Marcus by Goldman Sachs Bank CDs Rates Compare to Other Banks

When compared to Capital One and Ally Bank long-term CDs, Marcus generally outperforms their rates. Where Marcus falls short is in its short-term CDs, the six-month and nine-month options. Ally Bank offers much higher interest rates for its accounts. Ally Bank CDs also earn according to balance tiers, which allows customers with higher balances to earn at better rates.

CD Account

Marcus by Goldman

Capital One

Ally Bank

1 Year

1.80%

1.65%

1.50%

3 Year

2.00%

2.00%

1.85%

5 Year

2.50%

2.45%

2.25%

Should You Get a Marcus by Goldman Sachs Bank CD Account?

If you’re looking for some of the highest long-term CD interest rates in the industry, a Marcus CD could be just the right account for you. Don’t forget you do need at least $500 to open a CD with this bank. Once you meet that minimum, you’ll have access to high interest rates to grow your savings.

It’s also important to remember that CDs are stricter when it comes to moving your money around. You don’t have the ability to make additional deposits or principal withdrawals throughout the term. Marcus does allow deposits within the first 30 days and withdrawals of interest earned, though. However, if the limits of a CD don’t suit your needs, you might want to consider Marcus’ High Yield Savings Account instead.